Markets Wait For U.S. CPI Data To Renew Rate Cut Hopes

Markets have pinned hopes on the CPI data to provide further evidence of disinflation that would support an early rate cut by the Fed. Though the month-on-month CPI is seen edging up from the previous month’s flat reading, the annual reading is expected to slide down to 3.1 percent from 3.3 percent earlier. The Fed Chair Jerome Powell’s comments at the recent Congressional testimony that the central bank wouldn’t wait for inflation to hit 2 percent before cutting rates also supported sentiment.

Wall Street Futures are trading in negative territory. European benchmarks are trading in the green zone. Asian stock indexes surged amidst Chinese regulators tightening short selling curbs.

Dollar Index declined ahead of the CPI data release. Bond yields mostly hardened. A larger-than-expected drawdown in inventories in the U.S. lifted crude oil prices despite the International Energy Agency trimming its demand outlook. Gold gained amidst the U.S. dollar’s weakness. Major cryptocurrencies are trading mixed.

Here is a snapshot of the major world markets at this hour.

Stock Indexes:

DJIA (US30) at 39,658.40, down 0.16%
S&P 500 (US500) at 5,628.00, down 0.10%
Germany’s DAX at 18,437.55, up 0.11%
U.K.’s FTSE 100 at 8,210.79, up 0.21%
France’s CAC 40 at 7,597.74, up 0.32%
Euro Stoxx 50 at 4,973.45, up 0.29%
Japan’s Nikkei 225 at 42,278.00, up 1.00%
Australia’s S&P ASX 200 at 7,889.60, up 0.93%
China’s Shanghai Composite at 2,970.39, up 1.06%
Hong Kong’s Hang Seng at 17,832.33, up 2.06%

Currencies:

EUR/USD at 1.0850, up 0.18%
GBP/USD at 1.2874, up 0.23%
USD/JPY at 161.56, down 0.07%
AUD/USD at 0.6755, up 0.12%
USD/CAD at 1.3634, up 0.12%
Dollar Index at 104.85, down 0.19%

Ten-Year Govt Bond Yields:

U.S. at 4.280%, up 0.05%
Germany at 2.5500%, up 0.55%
France at 3.197%, up 0.38%
U.K. at 4.1965%, up 1.61%
Japan at 1.083%, down 0.28%

Commodities:

Brent Oil Futures (Sep) at $85.40, up 0.38%.
Crude Oil WTI Futures (Aug) at $82.42, up 0.39%.
Gold Futures (Aug) at $2,387.05, up 0.31%.

Cryptocurrencies:

Bitcoin at $58,431.12, down 0.33%
Ethereum at $3,143.51, up 1.37%
BNB at $532.90, up 1.16%
Solana at $142.98, down 0.51%
XRP at $0.4457, up 0.83%.

Market Analysis